CAPITAL MARKETS DAY 2017 - NOVEMBER 2017| SCOUT24
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Disclaimer This document has been issued by Scout24 AG (the Company and, together with its direct and indirect subsidiaries, the "Group") and does not constitute or form part of and should not be construed as any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities of the Company, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision, nor does it constitute a recommendation regarding the securities of the Company or any present or future member of the Group. All information contained herein has been carefully prepared. However, no reliance may be placed for any purposes whatsoever on the information contained in this document or on its completeness. No representation or warranty, express or implied, is given by or on behalf of the Company or any of its directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of its directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions or otherwise arising in connection therewith. The information contained in this presentation is subject to amendment, revision and updating. Certain statements, beliefs and opinions in this document are forward-looking, which reflect the Company s or, as appropriate, senior management s current expectations and projections about future events. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risks, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in this document regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. The Company does not undertake any obligation to update or revise any information contained in this presentation (including forward-looking statements), whether as a result of new information, future events or otherwise. You should not place undue reliance on forward-looking statements, which speak only as of the date of this document. This document is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended. Neither this document nor any copy of it may be taken or transmitted into the United States of America, its territories or possessions or distributed, directly or indirectly, in the United States of America, its territories or possessions or to any US person. By attending, reviewing or consulting the presentation to which this document relates or by accepting this document you will be taken to have represented, warranted and undertaken that you have read and agree to comply with the contents of this notice. Nothing in this document constitutes tax advice. Persons should seek tax advice from their own consultants or advisors when making investment decisions. All numbers in new vertical structure unaudited and preliminary only.
Capital Markets Day 2017 Speakers Greg Ellis Christian Gisy CEO CFO Scout24 AG Scout24 AG Thomas Schroeter Felix Frank Ralf Weitz Senior Vice President Vice President Senior Vice President ImmobilienScout24 AutoScout24 Scout24 Consumer Services page 3
Scout24 Capital Markets Day 2017 Agenda 09:00 am CET Welcome to Scout24 s first Capital Markets Day ImmobilienScout24: Update on strategy and market segments AutoScout24: Update on strategy and market segments Scout24 Consumer Services: Expanding focus from listing to transaction Re-Cap Q3 2017 Financials / Adapted financial disclosure starting Q1 2018 Wrap-up and Q&A Session 01:30 pm CET Lunch at the venue & networking page 4
The Journey Continues: Delivering on IPO Objectives Total core operations Guidance given at time of IPO 9M 2015 – 9M 2017 Revenues (growth) Low double-digit +11% CAGR ooEBITDA margin (%) Low-single-digit expansion p.a. +2% CAGR Delevered from 4.0x to 2.45x net Group Leverage (1) Deleveraging at ca. 1x p.a. debt/LTM ooEBITDA 1 page 6
Digital activity influencing market dynamics & driving change CONSUMER PARTNER Transparency Consumer orientation Reflect market Simplicity Cost efficiencies Relevance Enhance market Functionality Modularisation Allow market to transact page 7
Addressing Consumer And Customer Needs In The Market CONSUMER PARTNER Displaying a wide range of listings REFLECT Supporting with lead acquisition Creating a transparent market environment Providing valuable consumer insights Complementing offering with relevant services ENHANCE Delivering data driven tools for branding & acquisition Tracing Consumer Journey across marketplaces Driving engagement with consumers TRANSACT Providing digital alternative for offline services Helping with the digitisation of day-to-day business page 8
Scout24 Market Network: An Ecosystem for Consumers and Customers Long-term Multiple relationships Buyers and Sellers Marketplace Marketplace Network Listings Complex Profiles Products and Services Multi- Interaction/ transactions Communication Data & Analytics Cross-device flow Personalization Market insights page 9
Enhanced Monetization Opportunities for Scout24 More ARPU1 and 3 Revenue Content Leadership Monetization of Value Proposition Large Amount of 1 Quality Listings Best Consumer Experience... 2 More Traffic and Audience page 10
Bringing more Value to the Marketplace – Real Estate Reflecting ~100k ~13.000 Additional Email subscribers ~103m Leads per for premium square meters Object profile Reflecting a great amount of Enhancing search results with Helping Consumers finalize the Commercial Real Estate in Germany Property you might also like transaction page 11 Source: Management estimates, 2017
Bringing more Value to the Marketplace – Automotive 65% 50% of of users want users 8-10% 360° images find feature New Car helpful Leads originate from AS24 Providing quality listings exclusively Enhancing listings with valuable Delivering relevant leads to dealers and with the 360° experience information and creating transparency OEMs page 12 Source: Management estimates, 2017
Bringing more Value to the Marketplace – Consumer Services ~80k ~100k ~150k Leads to credit score Leads to RRI finance partners applications per partners per per quarter quarter quarter Creditcheck Finding the right financing Providing an easy service for property In-app inventory list tool for partner with the mortgage seekers and valuable information for moving company calculator home-owners page 13 Source: Management estimates, 2017
Expanding our addressable market and targeting additional revenue opportunity ● Mortgage loans Property Sector ● New cars retail Automotive Sector ● Home insurance in Germany 1 ● Used cars retail in Germany 1 ● Utilities ● After-sales market ● Moving expenses c.€510bn+ c.€280bn+ ● Auto finance & leasing ● Renovation ● Car insurance Property Transaction Value Automotive Advertising c.€137bn (incl. OEM) €2bn+ Agent Commission Pool Automotive Dealer Marketing c.€6bn+ €0.6bn Marketing Spending c.€0.8bn Automotive Classifieds Online Marketing c.€0.3bn c.€0.3bn page 14 Sources: Management estimates, based on OC&C 2015 and own calculations
Continued Diversification of Revenues since IPO 33% 30% At Time of IPO Today 50% (Sep 2015) (Sep 2017) 70% 17% IS24* AS24* IS24 AS24 S24 Consumer Services Adapting financial disclosure to reflect transformed business page 15 Revenue shares * Scout24 Consumer Services Revenues included
ImmobilienScout24 Update on Strategy and Market Segments Thomas Schroeter Senior Vice President, ImmobilienScout24 Scout24 Capital Markets Day, November 2017
Provide a Networked Real Estate Marketplace which is Completely Digital, Offering a Transparent, Simple and Relevant Experience for All Actors in the Market
We are the Leading Player (473k Around Listings) 40k 1.9x private listings Around 470,000 listed properties, 1.9x more than next competitor1 per day more listings than Around 40,000 paid private listingscompetition online per day11 Offering the most residential listings in 84% of regions in Germany2 Around 13 Million Unique Monthly Visitors, 1.6x more than next competitor3 More than 50% of the market only visits IS244 Market leader in usage frequency and reach in 72% of regions in Germany5 + 22% growth in leads provided to partners6 Sources:: Management estimates, if not stated otherwise page 3 1. As per end of September 2017, total listings compared to combined vertical competitor 4. Comscore MMX, desktop only, September 2017, average from July to September 2017 2. Total residential listings compared to combined vertical competitor (competitor 1 and 2) measured in 403 regions, Q3 2017 5. Based on usage frequency and reach, mindline study Q3 2017, competitor set comprising IW, IN and eBay Kleinanzeigen 3. Comscore MMX desktop and mobile, compared to combined competitor, September 2017, average from July to September 2017 6. Total number of email leads October 2017 versus October 2016
Acting in a Healthy Market GDP with stable growth during last 3 years Moderate growth in residential transaction volume Consumer confidence at record high Healthy increase in residential sale level transaction value in 2016 Amount of building permissions increased Employment continuously increasing strongly in 2016 Interest rates continue to be at low level Solid increase in commercial real estate price index Consolidation in agent market slowing down Bestellerprinzip for sale unlikely page 4 Sources: Management estimates, Federal Statistic Office (Statistisches Bundesamt), GEWOS Institut für Stadt-, Regional- und Wohnforschung GmbH,, Association of German Pfandbrief Banks (Verband deutscher Pfandbriefbanken, vdp)
We Serve the Whole Market Fueled by Consumer Needs Consumers Asset Owner Partners Picture Picture • ~50% home ownership rate in Germany, trending upwards • ~33 thousand real estate • ~3.6 million transactions in • ~2.5 million private residential professionals in Residential residential real estate in transactions per year, thereof and Business real estate Germany per year ~2.2m rental and ~0.3m sales • Commission pool of €6.0+bn1 transactions • Successfully market objects • Decide on marketing alone or • Find best place to live • Acquire new objects & build local Goals through agent; find best agent • Decide to rent or buy reputation and branding • Find best suitable buyer or tenant • Simple & transparent process • Gain market insights & knowledge • Determine best price & timing to run the business Value Proposition • Supply: Property market is on IS24 • Support in finding the right agent • Most efficient marketing channel • Consumer experience: Simple, engaging & relevant • Market property to maximize value • Best products for acquisition and brand building • Support in decision-making • Certainty and efficiency of transaction • Insights, data & knowledge through • Assistance throughout consumer • Success guarantee ("Erfolgsgarantie") market navigator lifecycle Sources: Management estimates, Federal Statistic Office (Statistisches Bundesamt), Techem, OC&C 2015 1. Driven mainly by around 600,000 sales transactions with an average transaction value of €240k, agented transactions of 58% plus commission on rental and commercial transactions 2.
Dominating the Demand Side of the Market We are reaching most consumers… …and they are satisfied with us ~ 13.0 Million Unique Monthly Visitors1 ~ 76% satisfaction with search experience5 ~ 50% only look on IS242 Best rated and most downloaded App6 ~ Most used portal in 288 regions3 Consumer Brand of the year7 Double-digit growth in visits in 20174 Sources:: Management estimates, if not stated otherwise 1. Comscore MMX desktop and mobile, compared to combined competitor, September 2017, average from July to September 2017 2. Comscore MMX, desktop only, September 2017, average from July to September 2017 page 6 3. Based on usage frequency and reach, mindline study Q3 2017, competitor set comprising IW, IN and eBay Kleinanzeigen 5. Own research, as per September 2017 4. Based on average monthly visits (sessions) the IS24 platform from mobile devices, mobile and all IS24 applications as measured by own traffic 6. iOs and Android App Stores, November 2017 monitor (google analytics) 7. YouGov BrandIndex, October 2017
Digitizing the Owner Lifecycle to Expand Competitive Advantage Simple & efficient web Finding the best agent & mobile listing flows Listing and digital presentation of properties Contact manager & appointment planner ~ 40 thousand private listings Managing Valuation Market on IS24 and insights qualifying of Premium profile Success guarantee applicants ("Erfolgsgarantie") for our integration owners 85% customer satisfaction Preparation of service charges statement Managing Model Contracts Managing the the property transaction page 7 Sources:: Management estimates, internal data
Residential Real Estate: Partnering with Agents to Drive their Business in a Digitising Real Estate World €112 m Residential real estate ~ 26 thousand players in the market (incl. property managers) ~ 70% working with IS24 on a regular basis1 ~ €5.0+ billion commission pool Fragmented market with low number of large players and high number of small players (~70% of agents are SMBs) Highly diverse group with regards to digital savviness (~35-40% of marketing spent offline) Business drivers: Efficiently rent / sell out objects, acquire new objects, build local reputation & branding Residential real estate page 8 Sources: Management estimates, internal data, OC&C 2015 IS24 Residential Revenue 2016 1. Contractual and non-contractual (professional pay-per-ad customers)
We are Fueling our Leading and Exclusive Position… We offer the most residential real estate listings… ...and we are the most used portal 330 160 IS24 315 150 IS24 1.5x 1.7x 1.2x # residential listings, in thousands 140 210 1.6x 1.7x Average Usage index1 1.2x 1.3x 1.3x 1.9x 130 195 120 combined comp 180 comp 2 comp 1 comp 3 combined comp comp 3 105 comp 1 90 comp 2 0 30 Sep Dec Mar June Sep Q4 2016 Q1 2017 Q2 2017 Q3 2017 16 16 17 17 17 Residential real estate page 9 Sources: Management estimates, for listings, based on mindline study Q3 2017 for Usage Index 1. Usage Index by average shows the index value of a portal in relation to the average of all relevant real estate portals
… in the Local Real Estate Markets … Leading in regional listings… and traffic share +16pp +18% increase in regions with regions with leading leading position position Q3 2017 vs Sep 2017 vs Sep 2016 Q3 2016 Sep 2016 Sep 2017 Q3 2016 Q3 2017 Residential real estate page 10 Sources: Management estimates for listings, based on mindline study Q3 2017 for Average Usage Index (traffic) Regions above 100% share in listings or traffic, compared to competitor set comprising IN, IW and ebay KA for Usage index, Combined next competitor for listings
… and our Partners are Appreciating this Churn rate at Indexed churn rate, residential agents2 100 record low 90 (0.3) 13.2 80 0.0 0.5 13.2 70 (0.3) 0.3 (0.3) 2016 60 -53% 13.0 12.9 50 # of partners, in thousands 40 2017 +6% 0 net Increase in number Mar Jun Sep Dec of partners since Dec 16 58% Customer Satisfaction3 54% 50% +10pp Increase in customer Dec Mar June Sep 46% satisfaction since Q2 2016 16 17 17 17 0% Q2 2016 Q4 2016 Q2 2017 Net gain excl. Partner leaving the business Partner leaving the business / inactive Partner1 Residential real estate Sources: Management estimates, internal data page 11 1. No listings at any online sources 4 months after inactivation at IS24 2. Monthly average of 5 week rolling churn rate of residential agents based on contracts, indexed to January 2016 3. Percentage of customers with satisfied and very satisfied rating, residential agents
Our Products Provide Value to our Partner’s Businesses Successfully market Acquire new objects, Run the business existing objects build local reputation & brand ▪ Largest reach in Germany ▪ Increased visibility with top- ▪ Market Navigator: Market ▪ Accelerated marketing of-the-list products knowledge, insights, through visibility products ▪ Qualified home owner leads objects & home owners ▪ Efficient lead and contact ▪ Agent Directory ▪ Campus: Relevant know- management ▪ Targeted Display Advertising how & information Provide the most efficient Provide the best ROI for Understand the market marketing channel acquisition Residential real estate page 12
Product Launch Example: New Exposé in VIA Logic Improved sharing & saving No third-party advertising opportunities for Schaufenster exposés Logo & corporate Improved multimedia- coloring integration Improved map Detailed partner portrait integration Sticky contact form Residential real estate page 13
Sales Presenter Example: Investing into Sales to Have High-Quality Conversations with our Partners… Sales Presenter Your Usage of Visibility Products Automated data collection to simplify preparation of customer visits Provides customer-specific data without manual research Simple and flexible customisation of customer proposals This is how Visibility Products help you Enables high-quality conversations Comparison to selected competitors Residential real estate page 14
… and to Demonstrate our Value Creation to our Partners Illustrative Sales Presenter output Sale Rent # of sold objects during the last 6 months 12 - Price of sold objects 3.936.000,00 € - Ø Price / Rent per object 328.000,00 € - Provision (%) / Number of monthly Rents (#) 5,0% - Commission in the last 6 months 196.800,00 € - Commission extrapolated to 12 months 393.600,00 € - Objects marketed via IS24 (%) 60% - Commission directly attributable to IS24 236.160,00 € - IS24 Cost in the last 12 month / ROI 12.000,00 € - ROI on 1€ Invest in IS24 19,68 € Residential real estate page 15
Value Creation Allows for Consistent Price Increases Using VIA as Differentiator 30% KAM Inside Sales 70% Revenue Share Revenue Share # of Partners As-is In Future Q3 2017 Residential real estate page 16 All data with regards to Residential Agents, excluding Property Management Scources: Management estimate,s internal data
And We are Seeing First Results in Uptake of VIA Products 25% of ARPU driven Revenue from Residential Agents in first month of VIA Contract (in €k) 1 130 by VIA products amongst Customers buying 120 VIA in September 2017 110 100 +47% +117% 90 80 70 60 50 2016 2017 10 Q1 Q2 Q3 Residential real estate page 17 Scource: Management estimates, internal data 1. Deriving from VIA sold separately from Membership contracts
Business Real Estate: Leader in a Diverse Market with Opportunity €46 m Business real estate Commercial real estate Developers and New Home Builders ~ 1.7 thousand players in the market ~ 3.0 thousand players in the market ~ 90% working with IS24 on regular basis ~80% working with IS24 on regular basis ~ €1.0 billion commission pool ~ €20+ billion project value A few large & professional players, followed by a Large & highly professional players acting nationwide as long tail of small players well as local heroes Competitive market, with focus on pre-qualified lead Business drivers: Landplot availability, efficient and timely generation and brand building marketing of units at best price ~110 thousand listings on IS24, 1.7x compared to ~3.0 thousand projects listed on IS24, 1.2x compared next competitor to next competitor Business real estate page 18 IS24 Commercial, Developer and New Home Builder Revenue 2016 Source: Management estimates, internal data, OC&C 2015
With Dedicated Products Providing Significant Value Proposition Efficient marketing channel Brand exposure Dedicated platform, customised for the needs of VIA Products and media products Commercial commercial seekers ✓ Dedicated search criteria ✓ VIA products for efficiently marketing objects ✓ Business districts and building brand in search funnel ✓ Location-based map search ✓ Dedicated media (display advertising) products ✓ Draw-search throughout search funnel (e.g. map search) Engaging search experience with dedicated products VIA Products and media products for customers Developer ✓ Consumer: Engaging search experience through ✓ Dedicated project-listing VIA products integration of new homes and developer projects into search ✓ Additional visibility product for unit within listing ✓ Customer: Project-based product for efficient marketing of units ✓ Premium service for projects, including creation of ✓ Opportunity to highlight specific units dedicated website, SEA campaigns, etc. Business real estate page 19
ImmobilienScout24 Strategy Going Gorward What We Have Delivered What We Are Working On Leveraging regional product and pricing Increased listings market share strategy Successful roll-out of major Continue product innovations, support with customized product innovations marketing activities First success in VIA upsell in Continue to drive VIA usage and further residential market segment expand ARPU alongside strategy Successfully implemented initiatives Drive sales force performance to improve sales performance page 20
AutoScout24 Update on Strategy and Market Segments Felix Frank Vice President, AutoScout24 Christian Gisy CFO, Scout24 AG Scout24 Capital Markets Day, November 2017
We are the Largest EU Automotive Digital Marketplace Around 2.4 million new and used cars1 98 million visits per month with 69% mobile share2 Around 47,600 dealer partners3 Market leader in 4 European countries4 48% of dealer revenue generated in market leading countries5 20% dealer growth in Germany since IPO5 35% ARPU growth in Core countries since IPO6 Sources:: Management estimates 1. Total listings on the AS24 platform, November 2017 4. A leading position in Europe (Belgium, Luxembourg, Netherlands, Italy) for automotive classifieds, based on listings and page 2 2. Based on average monthly visits (sessions) to the AS24 platform from mobile devices, mobile and all AS24 applications as measured by own traffic traffic monitor (Google Analytics) EU-wide, September 2017 5. Including commercial vehicle dealers, based on Q3 2017 3. Including commercial vehicle dealers 6. 9M 2017 ARPU compared to 9M 2015 ARPU in core countries, Management estimates; including commercial dealers
We are a Leading Player in our Core Markets European market overview No.1* NETHERLANDS GERMANY » ~ 280,000 ads » ~ 1.2m ads » ~ 8.5m visits per month2 » ~ 40m visits per month2 » Main competitor: » Main competitor: » Listing share vs. Main » Listing share vs. Main competitor1: 1.52x competitor1: 0.91x No.1* No.1* BELGIUM ITALY » ~ 129,000 ads » ~ 431,000 ads » ~ 7m visits per month2 » ~ 27 m visits per month2 » Main competitor: » Main competitor: » Listing share vs. Main » Listing share vs. Main competitor1: 1.92x competitor1: 1.58x No.1* AUSTRIA » ~ 103.000 ads » ~ 4m visits per month2 » Main competitor: » Listing share vs. Main competitor: 1.5x Sources: Management estimates, Autobiz, August 201, for Austria ncluding Gebrauchtwagen.at (not deduplicated) *In terms of listings; compared against local competitors in the respective market. Market position in Austria and Netherlands reached No.1 position post IPO 1. In terms of dealer listings, Autobiz, August 2017 page 3 2. Based on average monthly visits (sessions) to the AS24 platform from mobile devices, mobile and all AS24 applications as measured by own traffic monitor (Google Analytics), September 2017, including European AutoTrader and Gebrauchtwagen.at; Traffic in Germany partly re-directed to Easter-European Language Versions
We Cater to the Evolving Needs of the Massive Auto Ecosystem Consumers Dealers OEMs €156bn spent on cars annually €61bn also spent on insurance Marketing spend of >€650m in €2bn ad spend by OEMs in and financing and €64bn on after Germany – 65% is still offline Germany - 71% is still offline sales in Germany alone Less brand focused, more time online (Ø 6h and only 1,2 dealer visits) Sell used & new cars Find the right car from a Sell new cars & utilize factory Goals Fast turnover to best price capacity trustworthy seller, at a fair price & possible in good condition Getting closer to consumer Earn from adjacent services Value proposition Largest EU supply Largest EU auto audience Largest EU demand Outstanding user experience Targeted advertising Increase visibility to drive turnover Transparency & value added Consumer insights & access Additional tools to support sales services Sources: Management estimates, OC&C 2015, own calculations
We Provide Consumers with Tools to Address their Key Questions Is the dealer OK? Is the price OK? Is the condition OK? Dealer ratings Price tool 360° images CarlAuto Dealer AS24 was first in market and is still leading in # of ratings (doubled last year) AS24 was and still AS24 was and still is first in market is first in market Full online assessment possible more and higher qualified leads page 5
Price Authority: Evolving into Authoritative EU Pricing Data Source While Maximising Value for Money for Consumers List Page: Unmatched value proposition for both consumers and dealers Machine learning algorithm based on 10m ✓ training datasets Consumers Accurate and transparent market values of ✓ cars Consumer Empowerment with easy to Detail Page: ✓ understand price labels Informed consumers are closer to their ✓ buying decision Dealers Increased trust in dealer offers due to fair ✓ pricing AutoScout24 algorithms provide unmatched accuracy Pricing guidance for stock management and based on the most comprehensive and recent data ✓ trade-in page 6
Please visit the link on the Capital Markets Day page or just visit www.autoscout24.de/360/
360° - Highly Differentiated Proposition for both Consumers and Dealers Differentiator for consumers Differentiator for dealers New Experience Stand out from competition Engaging New Car Configurator Visibility boost and positioning as experience also for used cars innovative & trustworthy dealer Increased Transparency New customers Full online assessment of cars, virtual Increased attractiveness for walk around possible customers from longer distances Mobile & Consumer First Simple & efficient Smoothly integrated in mobile search 3min process and no need for flow – and with relevant content for hardware investment consumers Monetization lever is >10x of a normal listing: €1,99 charge per day page 8
Clear ROI Proposition for Dealers ~3% 1 €5-10 at 10-15%
Clear ROI Articulation Supports New Dealer Acquisition... Customized Pulse Report…. … to support ROI-Based Pitch Anonymized Anonymized Resulted in dealer acquisition 1 of 20% within last 2 years 30 15% 5 €254 €51 page 10 Source: Management estimates 1. Growth in Dealer locations in Germany since IPO, 9M 2017
… and Allows for Consistent Price Increases… Drove ARPU growth4 of 6 Price increases across all markets1 X 35% Ø15-25% Average price increase2 since IPO Associated churn impact of only 2% 3 Sources: Management estimates, internal data 1. During the course of 2017 page 11 2. Average price increase in core countries 2017 as of October 2017; does not apply to all dealer groups 3. As of October 2017 4. Average ARPU Growth in Core Countries since IPO, 9M 2017
...and On-Top-Product Sales with Clear ROI by Decreasing Standing Times. Proven lead uplift/ selling time decline Clear benefit for dealers Impact of standing time on price reductions Already used on 6% of all listings On average 0,5% price reduction every 10 days Marketing Power allows positioning on Significant impact on price reductions, top of search results page working capital, parking & insurance cost Average a lead uplift of 2-3x 52% uplift in ARPU when used2 Average 18% decline in selling time1 Marketing Power revenues growing at 31%3 Sources: Management estimates 1. Own calculations based on long-term case study for a top-tier automotive brand in Germany. page 12 2. Share of revenue of customers using Marketing Power, all regions, October and November 2017 3. Dealer listings in the core countries, September 2017
AS24 is a Crucial Contributor to How OEMs can Reach and Acquire Customers AS24 can enable OEM target consumers at a very early stage in buying process DECISION STAGE 51% are still undecided at the New vs Old car beginning of journey1 Key Consumer Only 31% of new touchpoint in Brand and Model car buyers are decision-making brand loyal2 process Where to buy / Dealer visits We accompany consumers during what dealer to visit limited to their decision journey and e.g. see Ø1.22 only 57% of consumers end up with the brand that they started the journey with... Decision is taking place on our platform! page 13 Sources: Management estimates 1. Based on own research, McKinsey 2015 2. DAT Report 2017
Autoscout24 Strategy Going Forward What We Have Delivered What We Are Working On Future proofed tech platform and Further leverage clear ROI product set to upgraded user experience continue strong monetisation growth Established a ROI based product Enhance & exploit USPs to further close gap in set and sales approach Germany Launched a differentiating consumer Further strengthening market position in core and customer product set countries and leveraging #1 position Significantly stepped up Launch products along the value chain to monetisation and dealer numbers address adjacent revenue pools page 14
Scout24 Consumer Services Expanding Focus from Listing to Transaction Ralf Weitz Senior Vice President, Scout24 Consumer Services Scout24 Capital Markets Day, November 2017
Digital Activity is Increasingly Influencing Market Dynamics Consumers Partners Transparency Consumer orientation Simplicity Cost efficiencies Flexibility Modularisation Availability Automatisation Drive the digitisation of the whole process of buying homes and cars Be the central place where the consumer and customer needs and expectations are met Page 2
We are Extending Focus from Listings to Transactions Property Mortgage Moving and Switch Facilities seekers 1m users renovation Phone / and Kitchen 20m 1m users Electricity Consumer journey € % New and Auto financing Car insurance Tyres Workshop used car searchers credit seekers up to 19m 1.3m 1m % Online – leads Offline – transaction Growing penetration of online services increases visibility of further transaction steps expanding Scout24’s business opportunities Page 3 Source:s: Management estimates, internal data
€ % Car Finance ~€38bn Premium Mortgage Consumer Finance Services ~€172bn ~€27bn This Transition Presents a Huge Market Opportunity Creating a €100m+ Business in the Mid-Term Page 4 Source: OC&C 2015
We Have Made Significant Progress in Building out the Business... Strong Organic Track Record Around 2,500 leads per day sent to mortgage & relocation companies Around 39,000 credit checks sold every month 3,000 paying financing and relocation partners1 13,000 premium subscribers2 2.8m visits per month3 ~€70 Million revenue in 2016 Double-digit revenue growth per year since IPO Sources:: Management estimates, internal data, October 2017, if not stated otherwise Page 5 1. Customers with at least one invoice 2. Active subscriptions as of November 2017 3. Sessions on Scout24 Consumer Services Products (Including Desktop, Mobile and Satellite Websites), measured by own traffic monitor (google analytics)
We Follow Four Avenues to Create Value and Monetise on Both Sides Consumers Partners Mortage Comparison 1 Mortgage Manager Finance Solvency Check 2 Filter to qualified Leads Premium Membership Direct Consumer Monetisation Relocation Calculator 3 Relocation Manager Relocation Brand Day 4 Data segments for targeting Sponsored DSL Speed Check 3rd Party Display Page 6
Leveraging our Traffic and Data Advantage to Drive Leads paid traffic Lead Generation Own organic traffic Data analytics, predictive tools Add enriched, personalized data Page 7
Improve Consumer Journey – Increase Lead Quality & Revenue Example How To Personalize The Mortgage Process 1. Leads + Score & User Check 3. Credit request First contact Active search Real estate expert Financing completed Information search Moving 1 3 5 7 9 11 ? % ✓ ✓ Real time notifications 2 4 6 8 10 Begin search Initial check Financial consulting Property owners Relocation 2. ✓ Pre Approval Page 8
The Vision: Creating a Scalable and Recurring Business Model, Consumers Become Customers Search Apply Live currently 13,000 active subscribers1 Acquisition Use Retention Access to exclusive listings Skip the queue – first line Locksmith service Verified identity Legal advice Premium data about listings Daily updated solvency data Deposit account Premium notifications Publish your profile One click application documents Page 9 Source: internal data 1. Active subscriptions as of November 2017
Next: Bringing Car Financing to the Next Level § Mobility in general is changing OEMs looking to differentiate as Consumers looking at total cost on the back of a variety of they feel the pressure of the of vehicle ownership rather socio-economic factors digitasation than just financing rates Page 10
We are in a Unique Position Transaction Capability to drive transactions and increase network effects Ability to get deeper in the First party data value chain Scoring and matching capabilities Strong innovation power High industry expertise Re-known partner in the industry Large engaged consumer base Search Marketplace Network Page 11
Scout24 Financials Re-Cap Q3 2017 Financials / Adapted financial disclosure starting Q1 2018 Christian Gisy CFO, Scout24 AG Scout24 Capital Markets Day, November 2017
Re-Cap: 9M 2017 Key Financial Highlights Strong organic …sustainable …and robust & visible revenue growth… profitability… cash flows +8% +11% +10% 354 186 170 326 168 154 92% 92% 53% 51% 9M 2016 9M 2017 9M 2016 9M 2017 9M 2016 9M 2017 Group Revenues Group ordinary Group cash operating EBITDA1 contribution2 ooEBITDA margin Cash Conversion2 Note: All figures in € millions. page 2 1. Ordinary operating (oo)EBITDA represents EBITDA adjusted for non-operating and special effects, ordinary operating EBITDA margin of a segment is defined as ordinary operating EBITDA as a percentage of external segment revenues 2. Cash contribution is defined as ooEBITDA less Capital expenditures, cash conversion as ooEBITDA / (ooEBITDA less Capital expenditures)
ImmobilienScout24: Improving Core Agent Dynamics… growth y-o-y External Revenues 5% Key highlights (in €m) 222 212 Core Agent revenues 12% Core Agent revenues show growth y-o-y 12% slight increase compared to Q3 2016 reflecting 6% improvement in core agent 2% 2% 76 trends 71 Other Agent revenues 14% 2% Other agent revenues 1% 1% remained mainly flat on a y-o- y basis mainly driven by 2% professional pay-per-ad revenues Q3 2016 Q3 2017 9M 2016 9M 2017 Other revenues Other revenues Other Agent revenues Core Agent revenues Increase reflecting robust revenue growth in adjacent businesses combined with a ordinary operating EBITDA 63% 63% slight increase in private growth y-o-y listing revenues (in €m) growth y-o-y 139 4% 134 4% 64% 63% ooEBITDA ooEBITDA margin reflecting 46 47 investments in product innovation adding to topline growth going forward Q3 2016 Q3 2017 9M 2016 9M 2017 xx% ooEBITDA margin page 3
…with Stabilising Core Agent Numbers December 2016 17.4 0.1 ▪ Core agent numbers increased in Q3 2017 (0.5) versus Q2 2017 March 2017 17.0 ▪ Low churn rates driving positive agent 0.4 number development (0.4) ▪ Stable customer winback rate (based on monthly run rate) in Q3 2017 June 2017 17.0 0.7 ▪ Winback and low churn adding to mix- effect in ARPU growth (0.5) September 2017 17.2 Net loss/gain excl. Agents leaving the business1 Agents leaving the business / inactive Agents Note: All figures in thousands. page 4 Source: Management estimates, internal data 1. No listings at any online sources 4 months after inactivation at IS24
AutoScout24: Sustainably Delivering on Growth Potential growth y-o-y External Revenues growth y-o-y 15% Key highlights (in €m) 14% 127 6% Core Dealer revenues 111 Strong ARPU increase on the 3% back of price increases and good visibility product uptake in core countries 19% 19% 43 Other Dealer revenues 38 5% 0% Other dealer revenues with a flat development y-o-y on the 18% back of a less dynamic development in revenues 20% from the Express Sale 19% 20% Other revenues Q3 2016 Q3 2017 9M 2016 9M 2017 Other revenues increased at a slightly slower pace due to a Other revenues Other dealer revenues Core Dealer revenues BE/NL/IT Core Dealer revenues GER less dynamic development in display revenues ordinary operating EBITDA 49% (in €m) growth y-o-y 43% 62 52% growth y-o-y 31% 47% 27% ooEBITDA 48 23 Revenue growth combined with operational gearing drive 18 margin increase Q3 2016 Q3 2017 9M 2016 9M 2017 xx% ooEBITDA margin page 5
We are Diversifying our Operations… 9M 2016 9M 2017 31% 33% 50% 53% 16% 17% Revenue share ImmobilienScout24 AutoScout24 Scout24 Consumer Services page 6
…and are Adapting our Financial Disclosure ImmobilienScout24 9M 2017 (in €m) ImmobilienScout24 9M 2017 Revenue with Residential real estate partners 84.8 (in €m) Revenue with Business real estate partners 35.0 Core Agent Revenues 118.8 Revenue with private listers and others 55.9 Other Agent Revenues 26.9 Revenue 175.7 Other Revenues 76.3 AutoScout24 9M 2017 Revenue 222.1 (in €m) Revenue with Dealers Germany 50.1 Revenue with Dealers in European Core Countries 44.7 AutoScout24 Revenue with OEM 14.5 9M 2017 (in €m) Other Revenue 8.8 Core Dealer Revenues Germany 48.7 Revenue 118.0 Core Dealer Revenues BE,NL, IT 42.9 Scout24 Consumer Services Other Dealer Revenues 10.5 9M 2017 (in €m) Other Revenues 24.8 Revenue with Finance Partners 29.8 Revenue 126.9 Services revenue 17.9 3rd party display revenue 11.6 Revenue 59.3 Other (not-reported) 9M 2017 (in €m) Other (not-reported) 9M 2017 (in €m) Corporate Revenue 0.4 Revenue 0.4 Other (FinanceScout24) 4.1 Revenue 4.5 page 7
ImmobilienScout24: Adjusted for More Granularity ImmobilienScout24 Q3 Q3 9M 9M Q3 Q3 YoY YoY KPIs YoY (in €m) 2016 2017 2016 2017 2016 2017 Residential Partners Revenue with Residential 13,157 13,171 0.1% 28.1 28.6 1.8% 84.0 84.8 0.9% (end of period, contractual, #) real estate partners ARPU (€) 610 634 4.0% Revenue with Business real estate 11.5 11.8 2.4% 34.0 35.0 2.9% Business Partners partners 2,871 2,739 (4.6)% (end of period, #) Revenue with private ARPU (€) 1,298 1,403 8.1% 18.2 18.9 3.5% 54.0 55.9 3.5% listers and others ▪ Revenue with Residential real estate partners updated to reflect all residential property revenue including professional pay-per- Revenue 57.9 59.3 2.5% 172.0 175.7 2.1% ad revenue (excluding Flowfact revenue) ▪ Business real estate partner line includes Commercial, Ordinary Operating Developer and New Home Builder 40.5 118.9 EBITDA ▪ Revenue with private Listers and others includes, besides private listing revenue, revenue from Flowfact, Classmarkets, Margin 68.3% 67.7% our business in Austria and others ▪ KPIs for Residential and Business Partners reflect revenue with partners in contractual relationships ▪ VIA revenue share to be provided in addition starting Q1 2018 page 8
Reconciliation Core Agent Revenues ImmobilienScout24 Q3 2017 YoY Residential Partners (end of period, contractual, #) 13,171 0.1% Q3 ImmobilienScout24 YoY 2017 ARPU (€) 634 4.0% Core Agents Core Residential revenues (€m) 24.9 2.7% 17,230 (0.8)% (end of period, #) Business Partners (end of period, #) 2,739 (4.6)% ARPU (€) 781 4.4% ARPU (€) 1,403 8.1% Core Agent Revenues (€m) 40.1 2.3% Core Business revenues (€m) 11.6 2.5% Scout24 Consumer Services Q3 2017 YoY Finance Listing revenues (€m) 3.7 (1.8)% page 9
AutoScout24: Slightly Adjusted to Reflect Business Evolution AutoScout24 Q3 Q3 9M 9M Q3 Q3 YoY YoY KPIs YoY (in €m) 2016 2017 2016 2017 2016 2017 Revenue with Dealers Dealer Germany (#) 25,335 27,443 8.3% 14.4 17.1 19.0% 41.9 50.1 19.5% Germany ARPU (€) 193 210 8.9% Revenue with Dealers in European Core 13.1 15.5 18.5% 37.6 44.7 18.7% Dealer European Core Countries (#) 20,568 20,981 2.0% Countries ARPU (€) 219 246 12.3% Revenue with OEM 4.6 4.9 5.7% 14.2 14.5 2.3% ▪ Revenue with Dealers updated to reflect all revenue with Other Revenue 3.1 2.8 (7.3)% 9.0 8.8 (2.0)% dealers, including car and commercial vehicle dealers ▪ European Core Countries include Austria, Belgium (including Revenue 35.2 40.4 14.8% 102.7 118.0 15.0% Luxemburg), Italy and Netherlands Ordinary Operating ▪ Other revenue reflects private listings, express sale, 20.1 54.6 Garageportal and others EBITDA ▪ MIA revenue share to be provided in addition starting Q1 2018 Margin 49.8% 46.2% page 10
Scout24 Consumer Services: Additional Disclosure Scout24 Consumer ▪ Revenue with Financing Partners reflects all revenue Q3 Q3 9M 9M Services YoY YoY generated with Financing Partners (consisting of listing 2016 2017 2016 2017 (in €m) and lead revenue) Revenue with Finance 8.4 10.1 19.5% 25.4 29.8 17.5% Partners ▪ Services revenue reflects all revenue generated either with consumers directly or indirectly (e.g. credit check Services revenue 5.4 6.2 16.3% 15.3 17.9 16.7% or relocation lead revenue) 3rd Party Display ▪ 3rd Party Display revenue reflects all display revenue 3.4 3.6 6.6% 10.6 11.6 9.3% revenue generated with 3rd parties, i.e. not with Residential or Business real estate partners, Dealers or OEMs Revenue 17.2 19.9 15.9% 51.3 59.3 15.6% Ordinary Operating 6.4 20.2 EBITDA Margin 32.4% 34.0% page 11
Our Financial Disclosure Going Foward 9M 9M 9M Revenue YoY ordinary operating EBITDA Margin (in €m) 2016 2017 (in €m) 2017 ImmobilienScout24 172.0 175.7 2.1% ImmobilienScout24 118.9 67.7% AutoScout24 102.7 118.0 15.0% AutoScout24 54.6 46.2% Scout24 Consumer Services 51.3 59.3 15.6% Scout24 Consumer Services 20.1 34.0% Scout24 Group 326.3 353.5 8.3% Scout24 Group 185.5 52.5% page 12
Strong Cash Flow Generation… (in €m) Total Revenue 354 Solid topline driven by organic growth Operating Expenses (168) Operating leverage oo EBITDA 186 52.5% margin Limited capex requirements non-operating items (14) Reported EBITDA 172 Capex (16) To approach statutory corporate rate Reported Cash Contribution 156 92% Cash conversion1 Income Taxes Paid (54) Underlying FCF 102 Interest paid (9) Deleveraging and significantly improved cost of debt Levered FCF 93 Potential for outsized net cash flow growth page 13 1. Cash conversion is defined as (ooEBITDA less Capital Expenditure) / ooEBITDA .
…with Clear Priorities for Cash… Re-invest in growth M&A activities targeted to strengthen market positions or grow adjacencies business Return cash to shareholders Dividend pay-out ratio of 30.0% to 50.0% of adjusted net income over time Repay debt Target leverage of 1.5x to 1.0x over time page 14
…Combined with Strong Operational and Financial Performance Revenues 354 ▪ We expect Group revenues to record high-single-digit percentage growth rate in 2017 ▪ We target Group revenues in 2018 to record a high single to low double- digit percentage growth rate, reaching a low- to mid teens growth rate in 9M 2017 2019 ordinary operating EBITDA 186 ▪ We expect Group ordinary operating EBITDA margin in 2017 to increase by at least one percentage point compared to 2016 (was 50.8%) 53% ▪ We target for 2018 going forward to expand Group ordinary operating EBITDA margin by a low-single-digit percentage point each year 9M 2017 ooEBITDA margin page 15 Note: All figures in € millions
Q&A
Scout24 Investor Relations Contact Details Capital Markets Day 2017 Previous Reports and Publications Today’s presentation material can be found on the Q3 and 9M Report 2017 http://www.scout24.com/en/Investor-Relations/Financial-Publications/Financial- event page: Reports/Financial-reports.aspx http://www.scout24.com/en/Investor-Relations/events/capital- Half Year Report 2016 http://www.scout24.com/en/Investor-Relations/Financial-Publications/Financial- markets-day/Capital-Markets-Day.aspx Reports/Financial-reports.aspx Full Year Report 2016 report.scout24.com/2016 CSR Report 2016 http://www.scout24.com/en/Investor-Relations/Financial-Publications/other- publications/other-publications.aspx Investor Relations Contact Britta Schmidt Diana Apostol Vice President Investor Junior Manager Relations & Controlling Investor Relations Tel : +49 89 444 56 3278 ; Fax : +49 89 444 56 193278; Email : ir@scout24.com Photos: Scout24, Juan Di Nella via Unsplash, Alexandra Kirr via Unsplash, Andre Benz via Unsplash
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